Difficulty: Medium

Average Score: 53%

Perils excluded in the standard Homeowners - Broad Form perils coverage are

Rationale

Earthquake.

Homeowners - Broad Form perils coverage typically excludes certain natural disasters, among which earthquakes are a prominent example. This exclusion is standard in many insurance policies due to the high risk and potential for significant damage associated with such events.

A (water damage occurring because a storm broke a window and then rain damaged the interior.) YOUR ANSWER

This scenario describes a chain of events triggered by a storm, which is generally covered under broad form policies. As the damage resulted from a storm-related incident, it does not fall under the exclusions of perils and is likely to be compensated by the insurance.

B (aircraft including self-propelled missiles.) YOUR ANSWER

Damage caused by aircraft is typically covered under a homeowners insurance policy as a specific peril. While this may seem dangerous, the broad form coverage does include accidental damage from aircraft, making this choice incorrect regarding perils excluded from coverage.

C (riot attending a strike.) YOUR ANSWER

Damage resulting from riots or civil disturbances is usually included in standard homeowners insurance policies. This means that damage caused during a riot would likely be covered, thus making this choice not an exclusion under broad form perils coverage.

D (earthquake.) CORRECT

Earthquakes are explicitly excluded from most homeowners insurance policies, including Broad Form perils coverage, due to the extensive risk associated with them. Homeowners are often required to purchase separate earthquake insurance to cover damage from such natural disasters, making this choice the correct answer regarding excluded perils.

Conclusion

Homeowners - Broad Form perils coverage excludes certain high-risk events, with earthquakes being a primary example. While water damage from storms, aircraft-related incidents, and riots are generally covered, the exclusion of earthquakes necessitates additional insurance for adequate protection against such catastrophic events. Understanding these exclusions is crucial for homeowners to ensure comprehensive coverage and mitigate potential financial loss.

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